The U.S. energy transition is driving a transformative shift in power generation, moving from coal to natural gas and, more recently, accelerating the adoption of renewables like wind and solar. Emerging technologies such as hydrogen, battery storage, and a resurgence in nuclear power are expanding the portfolio of energy generation options.

The energy transition is, in essence, also a water transition, as the U.S. power sector remains one of the nation’s largest water consumers. Driven by regulatory mandates, technological advances, and federal incentives like the Inflation Reduction Act (IRA), this shift is reshaping electricity generation and the sector’s significant water footprint. This shift presents challenges and opportunities for the water industry across power generation and supply chains. After decades of stability, rising electricity demand and the emergence of water-intensive, climate-friendly solutions like hydrogen and battery storage are redefining market potential for water solutions providers.

Most notably, the tech sector’s insatiable thirst for data centers and artificial intelligence is driving an unprecedented surge in electricity demand, with projections showing that data center power needs could double by 2030. Big Tech companies, such as Microsoft, Google, and Amazon, are poised to influence the demand curve and are beginning to reshape strategic considerations for electric power generators. This change includes large and small water-intensive nuclear power plants as reliable energy sources and curtailing the decommissioning of coal plants. In both instances, calls for water solutions and management will rise.

Bluefield Research’s team of water experts has developed this Insight Report to illuminate the key factors influencing the U.S. power sector and uncover emerging growth opportunities within the water sector.